Condo Building in GTA low risk

Condo building in GTA is low risk says CMHC

by Steve Randall20 Jul 2016

Overbuilding is not a major issue in the Greater Toronto Area as builders don’t start construction until the majority of homes are sold.

That’s the finding of a report by the Canada Mortgage and Housing Corp. which shows that 79 per cent of condo projects are only started once at least 70 per cent of the units have been sold. Generally the only exceptions are for smaller developments.

The CMHC says that unsold inventory is largely concentrated in downtown Toronto and Markham where the condo markets are more active. Where there are large numbers of unsold units, these are developments which began construction before reaching the threshold of 70 per cent sold.

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